Clarification of circumstances where a CGT clearance certificate is not required

Following requests for clarification in relation to the CG50 certification procedures in section 980 Taxes Consolidation Act 1997(TCA), eBrief No. 105/15 was issued on 27 October 2015.

In the interim, a number of associated issues have arisen in the course of enquiries from and correspondence with practitioners, and Part 42-03-01 of the Income Tax, Capital Gains Tax and Corporation Tax manual has been amended to refer to 4 particular issues:

• 1. Sales by financial institutions of loans secured on land in the State in the ordinary course of trades not carried on in the State.
• 2. Sales of such loans by "qualifying companies" under section 110 TCA in the ordinary course of business activities carried on in the State.
• 3. Payments made to non-resident unit holders in investment undertakings that are within sections 739B and 739C TCA.*
• 4. Definition of "land" for the purposes of section 980.

* In the case of a disposal by an investment undertaking referred to in paragraph 1.1(i)(B) of Part 42.03.01 of the manual, Revenue confirm that, for due diligence purposes, a purchaser can place reliance on the Central Bank register of Alternative Investment Funds in order to establish the tax-exempt status of any such investment undertaking.

22 April 2016